Japan's April core machinery orders up 2.2%

V.Phani Kumar

HONG KONG (MarketWatch) -- Japanese core machinery orders returned to the growth path in April, aided by strong orders from non-manufacturers such as financial firms and insurers.

The nation's core machinery orders rose a seasonally adjusted 2.2% in April from a month earlier, totaling 1.012 trillion yen ($8.3 billion), marking its first expansion in three months, Japan's Cabinet Office said Friday.

April's rebound follows a 4.5% decline in core machinery orders in March on month.

The overall growth in April was lower than the 4.4% growth estimated by economists.

"Although (core machinery) orders rose in April, it wasn't enough to make up for the falls in previous month," said Economy Minister Hiroko Ota at a news conference, according to Dow Jones Newswires.

The core machinery orders data is widely considered to be a key indicator of corporate capital spending in coming months.

Ota added that, "Production is weak right now and I will closely monitor how it will play out for the economy."

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